October 18, 2023

Does Homeowner’s Insurance Cover Workers’ Compensation in California

Domestic workers perform the incredible task of running homes. Whether it’s taking care of children, the elderly, sick members, doing household chores, cleaning, cooking, and gardening.

If an employee is hurt on the job, their employer is usually liable for their injuries. Similarly, an employer can be held liable for a domestic worker who becomes sick in the line of duty.

Due to the potential liability, it is recommended to have an insurance package that caters to unforeseen risks. More importantly, consider buying the insurance package from a reputable and trusted insurance agency in California.

Does Homeowner’s Insurance Cover Workers’ Compensation in California

People who often hire domestic workers wonder whether their homeowner’s insurance offers workers’ compensation insurance.

Yes, that is the simple answer to this question.

Even so, the coverage is minimal, exposing people who rely on homeowner’s insurance.

For instance, homeowner insurance can cover the medical expenses of injured workers who don’t enjoy protection under state workers’ compensation regulations. Some homeowner’s insurance policies mention that they offer protection to domestic workers; however, it is limited to those who work less than 40 hours per week.

Ultimately, homeowners insurance offers some level of protection to domestic workers but is not something you can count on. Employers who rely on homeowners insurance for protection have significant gaps they may need to learn.

In a worst-case scenario, they could be sued for thousands of dollars if an employee becomes ill or injured in the line of duty.

Why Homeowners Need Workers’ Compensation Insurance

First, California requires all employers to provide workers’ compensation insurance if they’re a ‘’full-time’’ employee. A housecleaner who comes to work once a week is not considered a full-time employee but is classified as an independent contractor.

If you don’t have workers’ compensation insurance, you may be personally liable for the medical expenses of your injured employee. Further, suppose you fail to provide workers’ compensation insurance. In that case, the DSLE can issue you a stop order and a penalty prohibiting you from using employees until you buy an insurance package.

The penalty for failing to have workers’ compensation insurance is $1,500 per employee. A homeowner should establish the employer before deciding whether to buy workers’ compensation insurance.

If they have a domestic worker hired through an agency, the agency insurance may cover the worker, including workers’ compensation insurance. However, if they determine they are the employer, they must acquire workers’ compensation insurance.

Here’s what is covered by workers’ compensation insurance:

Medical expenses
Lost wages
Rehabilitation expenses
Disability benefits
Death benefits

Get Workers’ Compensation Insurance for Domestic Workers Today

Although you’ve strived to provide a safe environment at home, an accident can occur, causing an injury to your worker. If uninsured, you’re obliged to meet the medical expenses. In a worst-case scenario, the worker can sue you, attracting hefty legal fees and a settlement amount.

Consider acquiring workers’ compensation insurance from a trusted provider like Panorama Insurance Agency to protect yourself.

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